April 25, 2012 / 1:57 PM / 5 years ago

ICE canola hits contract high on soy crop damage

(Reuters) - ICE Canada canola futures jumped to a nearby contract high on Wednesday as growing concerns about drought and frost damage to South America's soybean crops boosted oilseed prices.

Market shrugged off a case of mad cow that was detected in California. Canola meal is a key feed source for dairy cows in that state.

May canola gained $5.00 at $632.70 per metric tonne (1.1 ton) on volume of 519 contracts at 8:40 a.m. CDT (1340 GMT). Hit contract high.

July canola rose $5.40 to $625.90 per tonne on volume of 866 contracts.

New-crop November, which is the month with the biggest open interest, gained $4.50 to $583 per tonne on 1,258 contracts.

November's gain lagged nearby months after Statistics Canada forecast record-large canola acreage on Tuesday.

Traders see canola up $4 to $5 at Chicago Board of Trade open.

CBOT soybeans called to open up 25 to 28 U.S. cents per bushel as forecasters ratchet down South America's crop estimates.

MATIF August rapeseed gained 0.9 percent at 8:35 a.m. CDT (1335 GMT).

The Canadian dollar was trading early at 0.9840 against the U.S. dollar or US$1.0163, up from its Tuesday finish at $0.9880 against the U.S. dollar, or US$1.0121.

U.S. light crude oil rose 0.2 percent early at $103.80 per barrel.

(All figures in Canadian dollars unless noted)

Reporting by Rod Nickel in Winnipeg; additional reporting by Sam Nelson in Chicago

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